Avendra Releases Findings from Lodging Industry F&B Study
April 4, 2018 10:49am
Research provides food-and-beverage demand outlook through 2020, and reveals performance and occupancy trends, investment plans and new food formats
ROCKVILLE, MD, April 4, 2018 – Avendra today releases findings from a new F&B trends report titled “Lodging Food & Beverage Outlook” that gauges demand for hotel F&B over the next two to three years. The findings reveal current F&B and occupancy performance, identify hoteliers’ investment plans, and detail new food formats for the future.
“Today’s restaurants face multiple pressures based on shifting consumer behaviors,” said Chip McIntyre, senior vice president of strategic sourcing, Avendra. “We worked with an independent third party to help identify those behaviors to ensure that the restaurants and food operations our hotel customers own and operate can remain relevant in an increasingly diverse and competitive environment.”
Avendra provides procurement and supply chain management services for food-and-beverage and other areas of hotel operations. In addition, Avendra F&B experts analyze various offerings within a hotel’s foodservice outlets to help operators enhance revenue, reduce overall costs, and provide exceptional guest service. Detailed analysis includes menu engineering and product cross-utilization and comparisons against local competitors, product applicability reviews, and the exploration of practical product alternatives to achieve cost savings that can be implemented without sacrificing product quality.
The researcher received approximately 900 unique responses, with about 90 percent coming from hotel general managers and directors of F&B, and roughly 10 percent coming from either hotel management companies or brand-level/corporate entities spanning luxury to economy and independent segments.
“In the United States, the lodging industry represents approximately $200 billion dollars in annual revenues, and it’s growing by 1.5% to 2% each year,” McIntyre said. “Food and beverage tends to represent 25% of that total expenditure, or around $50 billion, and it’s growing at about 2% to 3% each year.
“Through this study, we uncovered three notable trends supporting F&B growth,” he said. “First, groups frequenting full-service hotels are spending more and they’re moving up to higher-tier proteins or beverage options. We are also seeing a shift towards local restaurant concepts accompanied by an upscale bar. Second, limited-service hotels are seeing outsized volume growth coming from grab-n-go type occasions. This lodging segment is seeing a larger share of the 2% industry supply growth. Third, 75% of group demand is already booked (driven by conferences and events), we can see group business is pacing up 2% to 3% for 2018. This is the biggest, most important driver of F&B demand.”
Here are just a few notable findings from the Lodging Food & Beverage Outlook:
“‘The Lodging Food & Beverage Outlook’ provides powerful insights on the growth in hotel F&B, identifies shifts in foodservice strategy for hotel owners, and gives perspective on the specific areas of the lodging business,” McIntyre said. “Overall, we found that hotel F&B growth is expected to pick up in 2018, likely driven by a combination of better group RevPAR trends plus more purposeful investments in growth formats.”
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Avendra is North America’s leading hospitality procurement services provider. Our supply chain management solutions are tailored to our clients’ business strategies and deliver benefits beyond great savings. We combine years of hospitality expertise, purchasing power, services and software to help customers impact the bottom line, improve operational performance, and better serve guests. More than 8,000 customers rely on Avendra as a trusted partner. Avendra is headquartered in Rockville, Maryland and has regional offices throughout North America. Additional company information can be found at www.avendra.com.
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